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the Agent had stayed with the insurance company”. The
termination payments in Schelble were based on a percentage of
the renewal commissions paid during the final months of the
contract. One of Schelble’s companies paid between 50 percent
and 150 percent of the commissions for the final 12 months of
service, while the other company paid between 50 percent and 100
percent of the commissions for the final 6 months of service. In
both cases, the percentage depended on the length of the agent’s
term of service. Petitioners argue that the holding in Schelble
should not apply to the case at hand, where the termination
payments are based on prior earnings rather than future
commissions. Again, we reject petitioners’ argument. In
Newberry v. Commissioner, 76 T.C. 441, 444 (1981), we held that
it does not matter whether the income arises from a “past,
present, or future income-producing activity”. See also
Schumaker v. Commissioner, 648 F.2d 1198, 1200 (9th Cir. 1981)
(self-employment income determined from source of income, not
taxpayer’s status when income realized); sec. 1.1402(a)-1(c),
Income Tax Regs. (self-employment income may include payments
received from services provided in a prior taxable year).
Finally, petitioners argue that the termination payments
should be treated as gain or loss from the sale of property under
section 1402(a)(3)(C), rather than as ordinary self-employment
income. Following a long line of authority, we held in Clark v.
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